REVIEW OF THE ECONOMIC IMPACT OF TAX REFORM ON CONSUMERS NOVEMBER Commissioned by
|
|
- Bethanie Booker
- 6 years ago
- Views:
Transcription
1 REVIEW OF THE ECONOMIC IMPACT OF TAX REFORM ON CONSUMERS NOVEMBER 2015 Commissioned by
2 This report, based on the analysis prepared by Robert Carroll and Brandon Pizzola of the Quantitative Economics & Statistics (QUEST) group within Ernst & Young LLP, summarizes recent research on the macroeconomic impacts of tax reform. The report emphasizes estimated impacts on consumers and workers as potential beneficiaries of tax reform in the United States because of the likely increases in consumer spending, wages, and employment. The estimated impacts presented are scaled to the 2014 U.S. economy. NRF is the world s largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retail is the nation s largest private sector employer, supporting one in four U.S. jobs 42 million working Americans. Contributing $2.6 trillion to annual GDP, retail is a daily barometer for the nation s economy. NRF s This is Retail campaign highlights the industry s opportunities for life-long careers, how retailers strengthen communities, and the critical role that retail plays in driving innovation. i
3 Executive Summary Consumer spending plays a vital role in the U.S. economy, comprising roughly two-thirds of GDP. It also can serve as one measure of living standards as it captures the actual value of food, housing, transportation, apparel, healthcare, entertainment and other goods and services that consumers purchase. Because it is such a major component of the economy, policy decisions with implications for economic growth can translate into significant changes in consumption. Through its impact on economic growth, tax policy can have notable effects on the economy. Policies that dampen growth may also adversely affect consumer spending. This report examines the potential impact on consumers and the overall economy of: (1) inaction on tax reform in the United States over the past several decades, and (2) the potential economic benefits that could arise from reform of the U.S. tax system. While tax reform nearly three decades ago set the U.S. corporate income tax (CIT) rate below the average CIT rate among other developed countries, the combination of a largely unchanged U.S. rate and the trend of rate reductions among other developed countries since that reform have resulted in the United States having the highest CIT rate among major developed countries. The relatively high U.S. rate 11.1 percentage points above the weighted average of the top 30 world economies (excluding the United States) has been found to discourage U.S. investment and U.S. capital accumulation and, ultimately, to reduce labor productivity and living standards in the United States. The cost of CIT rate reductions abroad to the U.S. economy, while the U.S. rate remained largely unchanged, was estimated in a 2013 report prepared for the Reforming America s Taxes Equitably (RATE) Coalition: Current U.S. GDP was estimated to be 1.5% lower. This is equivalent to a decline of $3,200 per family. U.S. GDP was estimated to be 2.0% lower ($4,400 per family each year) in the long term. Current U.S. consumption was estimated to be 2.0% lower ($3,000 per family). In the long term, U.S. consumption was estimated to be 2.8% lower ($4,200 per family each year). Current U.S. wages were estimated to be 0.2% lower ($150 per worker). In the long term, wages were projected to be 1.1% lower ($700 per worker each year). Figure ES1. The cost of inaction: The impact of lower corporate income tax rates enacted abroad since 1988 on the U.S. economy (annual impacts) GDP per family -1.5% (-$3,200) -2.0% (-$4,400) Consumption per family -2.0% (-$3,000) -2.8% (-$4,200) Wages per worker -0.2% (-$150) -1.1% (-$700) Current impact Long-run impact Note: All economic impacts are scaled relative to the 2014 U.S. economy. There is assumed to be four people per family. Central estimates across analyses examined are presented. The long-run refers to when the economy has fully adjusted. Models of this type typically find that two-thirds to three-quarters of the long-run change in GDP is attained within 10 years. ii
4 Macroeconomic estimates of a recent tax reform plan the Tax Reform Act of 2014 as proposed by former House Ways and Means Committee Chairman Dave Camp, R-Mich. (the Camp tax plan ) indicate that reform of the U.S. federal income tax has the potential to provide significant benefits to U.S. consumers and workers. The Camp tax plan is notable as a base-broadening, rate-reducing tax reform. This approach eliminates or scales back special tax provisions to pay for lower tax rates. Other tax reform plans of this type have been put forward by both the Administration and prominent members of Congress. Estimates of the Camp tax plan s impact on consumers and the overall economy are generally indicative of what a basebroadening, rate-reducing tax reform could realistically be expected to achieve. The central estimates across the analyses examined suggest: GDP would be 0.8% higher in the first five years ($1,800 per family each year) and 1.0% higher in the second five years ($2,200 per family each year). Consumption would be 1.1% higher in the first five years ($1,600 per family each year) and 1.5% higher in the second five years ($2,200 per family each year). Employment would be 0.6% higher in the first five years (0.9 million jobs) and 0.9% higher in the second five years (1.3 million jobs). That is, the number of jobs in the U.S. economy would be, on average, 0.9 million higher in each of the first five years growing to 1.3 million in the second five years relative to the number of jobs each year absent the Camp tax plan. While these estimates suggest that inaction in the United States is already having real economic consequences, they also suggest the potential upside of tax reform. Prominent macroeconomic analyses have found that a base-broadening, rate-reducing reform can have both immediate and long-term positive impacts for U.S. consumers and workers through increased GDP, consumer spending, employment and wages. Figure ES2. Benefits of rate reduction to the U.S. economy: The Tax Reform Act of 2014 (annual impact) GDP per family 0.8% ($1,800) 1.0% ($2,200) Consumption per family 1.1% ($1,600) 1.5% ($2,200) Total employment 0.6% (0.9 million) 0.9% (1.3 million) First five years Second five years *Employment is a stock whereas GDP and consumption are flows. This implies, for example, that the 0.6% annual increase in employment over the first five years means that the number of jobs in the economy would be, on average, 0.9 million higher in each of the first five years relative to the number of jobs each year absent the Camp tax plan. Note: All economic impacts are scaled relative to the 2014 U.S. economy. There is assumed to be four people per family. Central estimates across analyses examined are presented. The long-run refers to when the economy has fully adjusted. Models of this type typically find that two-thirds to three-quarters of the long-run change in GDP is attained within 10 years. iii
5 Table of Contents CONTENTS PAGE I. Introduction 1 II. The cost of doing nothing 2 III. The benefits of a lower corporate income tax rate 5 IV. Limitations and caveats 7 V. Summary 8 Endnotes 9 iv
6 Review of the economic impact of tax reform on consumers I. Introduction Consumer spending plays a vital role in the U.S. economy, comprising roughly two-thirds of GDP. It also serves as a measure for the standard of living as it captures the actual value of food, housing, transportation, apparel, healthcare, entertainment and other goods and services that consumers purchase and enjoy. Because it is such a major component of the economy, policy decisions with implications for economic growth can translate into significant changes in consumption. One notable policy area of concern is the current U.S. tax system, aspects of which may lower consumer spending by depressing economic growth. There is broad agreement that the U.S. corporate income tax (CIT) is in need of reform. The U.S. CIT rate, always high relative to other industrialized countries, became the highest among the 30 largest economies in In response, the Administration and prominent members of Congress have put forth tax reform plans to significantly reduce the CIT rate. These tax reform plans often follow the traditional formula of eliminating or scaling back special tax provisions to fund lower tax rates, which was the formula used in the Tax Reform Act of 1986 (TRA86) the last major U.S. tax reform. Such a reform can have immediate and long-term positive impacts for consumers through increased GDP, consumer spending, employment and wages. Moreover, inaction has a cost: Although the U.S. CIT rate has remained largely unchanged over nearly the past three decades, the lower CIT rates enacted abroad have likely had an adverse impact on the economy and consumers in the United States. This report summarizes findings from prominent analyses that have examined the impact of inaction on tax reform over the past several decades and the potential economic benefits that could arise from tax reform in the United States. This examination focuses on the potential impacts for consumers in both the near and long term. 1
7 II. The cost of doing nothing Although TRA86 reduced the U.S. statutory CIT rate to somewhat below the average rate among other developed countries, CIT rates abroad have since declined while the U.S. statutory CIT rate has remained largely unchanged (Figure 1). As a result, the United States now has the highest statutory CIT rate of the top 30 world economies, and countries such as Japan are in the process of lowering their rates even further. Figure 1. Statutory corporate income tax rates in the United States and the Rest of World, % Statutory corporate income tax rate 45% 40% 35% 30% United States Rest of World 25% Notes: The average statutory corporate income tax rate for the rest of world is weighted by the GDP of the 18 countries included in a 2013 EY report prepared for the Reforming America s Taxes Equitably (RATE) Coalition: Australia, Austria, Belgium, Canada, Finland, France, Germany, Greece, Ireland, Italy, Japan, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and United Kingdom. To increase the comparability of corporate income tax rates across countries, both national and subnational corporate income taxes are included. This is important to capture the differing degree to which a country s corporate income tax rate is applied at the national versus subnational level. In the United States the top federal corporate income tax rate is 35%. Source: EY Worldwide Corporate Tax Guide; OECD. 2
8 As shown in Figure 2, the United States statutory CIT rate of 39.0%, including both the federal and the average state CIT rate, is 11.1 percentage points higher than the GDP-weighted average (excluding the United States) CIT rate across the top 30 world economies. 1 Figure 2. Corporate income tax rates in the top 30 world economies by GDP, % 40% 35% 30% 25% GDP-weighted average (excl. U.S.): 27.9% Simple average (excl. U.S.): 25.8% 20% 15% 10% 5% 0% United Arab Emirates Taiwan Province of China Poland Saudi Arabia Thailand Turkey Russia United Kingdom Switzerland Sweden Korea Austria Netherlands Indonesia China Canada Taiwan Mexico Spain Australia Nigeria Germany Italy Belgium India Brazil Argentina Japan France United States Note: To increase the comparability of corporate income tax rates across countries, both national and subnational corporate income taxes are included. This is important to capture the differing degree to which a country s corporate income tax rate is applied at the national versus subnational level. In the United States the top federal corporate income tax rate is 35%. Source: EY Worldwide Corporate Tax Guide; OECD; GDP weighting reflects 2013 GDP estimates from the IMF. Inaction has consequences for both U.S. consumers and the overall U.S. economy. As other countries have reduced their CIT rates, the United States has become the highest CIT rate country. The high U.S. statutory CIT rate may adversely affect investment and capital accumulation and ultimately reduce labor productivity and living standards in the United States. The cost to the economy of CIT rate reductions abroad, in conjunction with little change to the U.S. CIT rate, was estimated in a 2013 report prepared for the Reforming America s Taxes Equitably (RATE) Coalition. 2 In particular, the report estimated the impact on consumers and the overall economy of the enactment of lower CIT rates abroad since TRA86. 3 The report used a variety of model specifications, but each led to broadly similar results: Each of the three key metrics of consumer welfare (GDP, consumption and wages) was estimated to decrease significantly. 4 3
9 Specifically, current GDP was estimated to be approximately 1.0% to 2.0% lower than it would be otherwise. This is equivalent to a decline of approximately $500 to $1,100 in GDP per person. The report estimated that after the U.S. economy fully adjusts to foreign rate reductions (i.e., the long run), the GDP reduction would be 1.3% to 2.7%, or roughly $700 to $1,500 lower per person each year. Note that these economic impacts and all economic impacts throughout this report are scaled to the 2014 U.S. economy. The decline in consumption is even more pronounced. Because of a largely unchanged U.S. CIT rate since TRA86, current consumption is estimated to be 1.6% to 2.3% lower than it would be otherwise. This means consumption could be $600 to $900 per person lower than it otherwise would be. Put differently, the current consumption of a family of four in the United States was estimated to be $2,400 to $3,600 lower because of the failure of the United States to keep pace with the reductions in CIT rates abroad. Consumption is estimated to decline even further, by 2.1% to 3.4% ($250 billion to $400 billion per year), in the long run. On a per capita basis, long-run consumption would be $800 to $1,300 lower each year than if the U.S. CIT were reduced in line with changes abroad; on a per family basis the reduction would be a decrease of $3,200 to $5,200 annually. Wages are also estimated to be somewhat lower: up to 0.3% ($0 to $200 per worker) now and significantly lower in the long run. This is because labor productivity is estimated to fall as the economy becomes less capital intensive over time due to the relative change in the CIT rate in the United States versus that in other developed countries. This translates into lower real wages for workers. While modest in the short run, wages are estimated to decline by between 0.9% and 1.2% ($600 to $800 per worker each year) after the economy fully adjusts to reductions in foreign CIT rates (i.e., the long run). 5 Table 1. Impact of lower corporate income tax rates enacted abroad since 1988 on the U.S. economy Current impact Long-run impact Gross domestic product Central estimate -1.5% -2.0% Reforming America's Taxes Equitability Coalition -1.0% to -2.0% -1.3% to -2.7% Consumption Central estimate -2.0% -2.8% Reforming America's Taxes Equitability Coalition -1.6% to -2.3% -2.1% to -3.4% Wages Central estimate -0.2% -1.1% Reforming America's Taxes Equitability Coalition 0.0% to -0.3% -0.9% to -1.2% Note: Central estimate is the midpoint of the estimated range. The long-run refers to when the economy has fully adjusted. Models of this type typically find that two-thirds to three-quarters of the long-run change in GDP is attained within 10 years. Source: Robert Carroll, John Diamond and George Zodrow, Macroeconomic effects of lower corporate income tax rates recently enacted abroad, an EY report prepared for the Reforming America s Taxes Equitably (RATE) Coalition, March
10 III. The benefits of a lower corporate income tax rate Macroeconomic estimates of a recent tax reform plan the Tax Reform Act of 2014 as proposed by former House Ways and Means Committee Chairman Dave Camp, R-Mich., (the Camp tax plan ) indicate that reform of the U.S. federal income tax has the potential to provide significant benefits to consumers and workers. The Camp tax plan, like many other reform plans, is notable as a base-broadening, rate-reducing tax reform for which we have macroeconomic analysis. The Camp tax plan would reduce the top federal CIT rate from 35% to 25% and the top individual tax rate from 39.6% to 35%. Similar to other recent tax reform plans, the Camp tax plan was designed to be revenue neutral, meaning it would not add to the deficit. And like others, it would pay for lower income tax rates by limiting or altogether eliminating various tax expenditures. 6 The macroeconomic impacts of the Camp tax plan were estimated in studies from the Joint Committee on Taxation (JCT) and the Business Roundtable (BRT). 7 The macroeconomic analysis by the JCT relied on two different models, an overlapping generations model (OLG) and the Macroeconomic Equilibrium Growth (MEG) model. The BRT study relied just on an OLG model similar to that used by the JCT. Although the analyses provide a sizable range of results due to varying models and modeling assumptions, all of the estimates indicate that the Camp tax plan would benefit U.S. consumers and workers through higher GDP, consumption and employment in both the near and long term. 8 Across the three economic models, the central estimate suggests that GDP would be 0.8% higher in the first five years ($450 per person each year) and 1.0% higher in the second five years ($550 per person each year) following enactment of the reform. The positive impact on consumption was estimated to be slightly larger. The central estimate across the models is a 1.1% increase in consumption in the first five years ($400 per person each year) and a 1.5% increase in the second five years ($550 per person each year). Put differently, the Camp tax plan was estimated to increase consumption by enough for a family of four to consume an average additional $1,600 of goods and services during each of the first five years and an average additional $2,200 of goods and services during each of the second five years. Finally, the central estimate of employment was reported to be a 0.6% increase in the first five years of the Camp tax plan (0.9 million jobs) and 0.9% increase in the second five years (1.3 million jobs). That is, the number of jobs in the U.S. economy would be, on average, 0.9 million higher in each of the first five years growing to 1.3 million in the second five years relative to the number of jobs each year absent the Camp tax plan. Only the BRT study reported the impacts of the Camp tax plan on U.S. consumers and the overall U.S. economy after the economy fully transitioned (i.e., in the long run). The longrun impacts estimated in the BRT study were reported to be almost twice as large as the estimated impact over the second five years for both GDP (a 3.1% long-run increase relative to a 1.7% increase in the second five years) and consumption (a 4.0% long-run increase relative to a 2.3% increase in the second five years). In contrast, the BRT study estimated that in the long run, employment gains would decline to 0.3% from their high of 0.4% over the second five years post-enactment. This slight falloff in the increase in employment under the Camp tax plan arises from the substitution of capital for labor as the capital intensity of the economy increases over time. 5
11 Table 2. Benefits of rate reduction to the U.S. economy: The Tax Reform Act of 2014 First five years Second five years Long-run impact Gross domestic product Central estimate 0.8% 1.0% * Business Roundtable 0.9% 1.7% 3.1% Joint Committee on Taxation (MEG) 0.1% to 0.3% 0.1% to 0.8% * Joint Committee on Taxation (OLG) 1.8% to 1.8% 1.4% to 1.4% * Consumption Central estimate 1.1% 1.5% * Business Roundtable 1.6% 2.3% 4.0% Joint Committee on Taxation (MEG) 0.1% to 0.3% 0.6% to 1.1% * Joint Committee on Taxation (OLG) 2.2% to 2.3% 1.9% to 1.9% * Employment Central estimate 0.6% 0.9% * Business Roundtable 0.5% 0.4% 0.3% Joint Committee on Taxation (MEG) 0.2% to 0.4% 0.5% to 1.3% * Joint Committee on Taxation (OLG) 1.4% to 1.5% 1.3% to 1.5% * *Long-run results not reported. Note: Central estimate is the midpoint of the estimated range. When estimated across models, an equal weight is given to the OLG models (50% weight) and the MEG model (50% weight). The long-run refers to when the economy has fully adjusted. Models of this type typically find that two-thirds to three-quarters of the long-run change in GDP is attained within 10 years. Source: John Diamond and George Zodrow, Dynamic macroeconomic estimates of the effects of Chairman Camp's 2014 tax reform discussion draft, Report prepared for the Business Roundtable, March 2014; and Joint Committee on Taxation, Macroeconomic analysis of the "Tax Reform Act of 2014," JCX-22-14, February While other base-broadening, rate-reducing tax reform plans have been put forward, their macroeconomic impacts have not been estimated. In 2010, the President s National Commission on Fiscal Responsibility and Reform (the Simpson-Bowles Commission) released a comprehensive tax plan that reformed both the corporate and individual income taxes with emphasis on lowering tax rates and broadening the tax base. In 2011, former Senate Finance Committee Chairman Ron Wyden, D-Ore., and Senator Dan Coats, R-Ind., introduced the Bipartisan Tax Fairness and Simplification Act of In 2012, the Administration provided an outline for a base-broadening, rate-reducing business tax reform in its Framework for Business Tax Reform. These plans all loosely follow the approach used in TRA86, which eliminated or scaled back special tax provisions to pay for lower tax rates. 9 Though we have no macroeconomic analyses for these other recent plans, estimates of the Camp tax plan s impact on consumers and the overall economy are likely indicative of what a base-broadening, rate-reducing tax reform could realistically be expected to achieve. 6
12 IV. Limitations and caveats While the Camp tax plan can generally be regarded as following in the tradition of the base-broadening, ratereducing TRA86, the specific base broadeners included in a tax reform plan can have an impact on the estimated macroeconomic impact of a tax plan, as can overall revenue impacts. It is important to note that certain base broadeners, particularly those that impact marginal investment incentives, may dampen the potential benefit from a base-broadening, rate-reducing tax reform, particularly over the long term. For a revenue-neutral tax reform, the negative impact of eliminating or scaling back investment-related tax provisions would be netted against the positive impact of lower tax rates. On net, however, a lower CIT rate, even when combined with the repeal or limitation of investment-related business tax provisions, can be expected to lead to increased consumption and additional economic growth. 10 This is illustrated by two prominent studies that examined the macroeconomic impacts of hypothetical reforms of the U.S. CIT that pay for a lower CIT rate by broadening the tax base. These studies analyze the sensitivity of the estimated impacts for a business tax reform by pairing a lower CIT rate with different tax provisions included as part of the base broadening under the reform. The first of the two studies is a 2014 Oxford University Centre for Business Taxation paper using an OLG model similar to those used to analyze the Camp tax plan. 11 This study contains a full base-broadening scenario that funds a revenue-neutral 16.8% CIT rate and a partial base-broadening scenario that funds a revenue-neutral 25.1% CIT rate. The partial basebroadening scenario retains accelerated depreciation (a significant investment-related tax provision) and 65% of the other investment incentives, which results in a more positive macroeconomic impact in GDP, consumption and employment than the full base-broadening scenario. For example, after the U.S. economy fully adjusts to the tax reform (i.e., the long run), GDP increases by 0.4% rather than 0.1% because most of the investment-related tax provisions in the tax code are retained. A 2011 study by three JCT economists found a similar effect when investment incentives were scaled back to pay for rate reductions. Using the MEG model, this study analyzed the net effect of rate reduction and base broadening by comparing the macroeconomic impact of pairing a reduction in the CIT rate from 35% to 30% with: (1) base broadeners that have no impact on marginal investment incentives and (2) the partial repeal of a significant investment-related tax provision. The increase in GDP is smaller in the latter case, namely a 0.1% increase relative to a 0.2% increase (first five years), a 0.1% decrease relative to a 0.2% increase (second five years) and a 0.1% increase relative to a 0.4% increase (long run). 12 In both of these macroeconomic simulations, including the repeal or limitation of investment-related business tax provisions as part of a base-broadening, rate-reducing tax reform led to increased consumption and additional economic growth. 7
13 V. Summary While tax reform roughly three decades ago put the U.S. CIT rate below the prevailing rate among other developed countries, the combination of a largely unchanged U.S. CIT rate and the trend of CIT rate reductions among other developed countries has resulted in the United States being a relatively high tax country at a potentially significant economic cost. The relatively high U.S. CIT rate has been found to discourage investment and capital accumulation and ultimately reduce labor productivity and living standards. While inaction in the United States has been estimated to have real economic consequences, this also suggests the potential upside of tax reform. Prominent macroeconomic analyses have found that a base-broadening, rate-reducing reform, such as the various tax reform plans put forward by the Administration and prominent members of Congress, could have both immediate and longterm positive impacts for consumers and workers through increased GDP, consumer spending, employment and wages. 8
14 Endnotes 1 To increase the comparability of CIT rates across countries, both national and subnational CIT rates are included. Subnational tax rates refer to state and local tax rates in the case of the United States. This is important to capture the differing degree to which a country s CIT rate is applied at the national versus subnational level. In the United States the top federal CITrate is 35% and state corporate income taxes add another 4% after taking into account deductibility. 2 See Robert Carroll, John Diamond, and George Zodrow, Macroeconomic Effects of Lower Corporate Income Tax Rates Recently Enacted Abroad, EY Report prepared for the Reforming America s Taxes Equitably (RATE) Coalition, March The macroeconomic analysis of the CIT reform enacted in other countries also accounted for some of the broadening of the CIT bases that might have accompanied the enactment of lower CIT rates. In particular, the analysis accounted for changes in other countries cost recovery systems used for depreciating investment in tangible property. 4 In particular, the simulations differed in (1) the policy used to offset the revenue loss associated with capital outflows and lower GDP (either a reduction in government transfers or an increase in wage taxes) and (2) key parameters for the purpose of sensitivity testing (one simulation incorporating higher firm-specific capital adjustment costs and the other assuming a higher capital supply elasticity). 5 It is not uncommon for estimates of the change in employment to show small changes or even increases in simulations for this type of policy change in this type of model. As the price of capital increases relative to the price of labor, there can be a shift from capital to labor (e.g., a decline in the capital-labor ratio) as the capital intensity of the economy falls. In particular for this policy simulation, the current impact to employment is an estimated change of 0.0% to 0.8% and, after the U.S. economy fully adjusts, an estimated change of -0.2% to 0.9%. 6 Additionally, the Tax Reform Act of 2014 would move the United States from its current worldwide tax system (i.e., U.S.-based global companies are currently taxed on their worldwide income but can generally defer U.S. tax on earnings of foreign subsidiaries until repatriated) toward a territorial tax system (i.e., exempt from U.S. tax 95% of the active, nonmobile, foreign-source portion of dividends received by a U.S. corporation from a foreign corporation in which it owns at least a 10% stake). 7 An additional macroeconomic analysis of the Tax Reform Act of 2014 was conducted by the Tax Foundation. The analysis only estimated long-run impacts and found that GDP would increase by 0.2% and employment would increase by 0.5%. These results are broadly similar to the low-end estimates of the JCT s MEG model in the second five-year period, but notably smaller than the central estimates of this report. See Stephen Entin, Michael Schuyler and William McBride, An Economic Analysis Of The Camp Tax Reform Discussion Draft, May The central estimates reported in Table 2 are calculated as a weighted average of the estimates from these three modeling efforts, but due to the similarity of the OLG models used by the JCT and BRT, the MEG and OLG models are each given a 50% weight. Additionally, note that the BRT analysis reported impacts in years 2, 5 and 10, whereas the JCT analysis reported impacts averaged over the first five years and averaged over the second five years. To make the results comparable, the JCT impacts over the first five years are compared to the BRT impacts in year 2 and the JCT impacts over the second five years are compared to an average of the reported BRT impacts in year 5 and year While TRA86 was broadly revenue neutral, it was designed and estimated to lower taxes on individual and increase taxes on corporations (i.e., a shift in revenue from corporations to individuals). Whether the higher taxes on corporations materialized is not clear. 9
15 Endnotes (continued) 10 Notably, the repeal of accelerated depreciation would offset at least to some extent the positive effects of a lower CIT rate on new investment by increasing the cost of capital. Its adverse effects on new investment may well be larger than the positive effects associated with a lower CIT rate with a similar revenue cost because accelerated depreciation is focused on new investment, whereas a lower corporate income tax rate reduces the tax on the return to both new and old investment, where the latter has no positive economic effect because this investment is already in place. This result is more likely when the reform is analyzed using a closed economy that does not allow for capital to rise or fall depending on the attractiveness of the United States as a place to invest as compared to other countries, and when the model does not adequately capture the reduction in the shifting of corporate profits and deductions in response to changes in the difference between the U.S. CIT rate and the CIT rate of other countries. On net, a lower CIT rate, even when combined with repeal of accelerated depreciation and most other investment-related business tax expenditures, can be expected to result in additional economic growth. See, for example, Robert Carroll, John Diamond, Thomas Neubig, and George Zodrow, The dynamic economic effects of a U.S. corporate income tax rate reduction, April See Robert Carroll, John Diamond, Thomas Neubig, and George Zodrow, The dynamic economic effects of a U.S. corporate income tax rate reduction, In Pathways to Fiscal Reform in the United States, John Diamond and George Zodrow, eds, MIT Press, Note that the overlapping generations (OLG) model in this paper reports smaller macroeconomic impacts from base-broadening, rate-reducing tax reform in large part because of a less developed modeling of the foreign sector and income shifting relative to the OLG models used in the BRT and JCT reports. 12 See Nicholas Bull, Tim Dowd, and Pamela Moomau, (2011), Corporate tax reform: A macroeconomic perspective, National Tax Journal, 64 (4), pp The major investment-related business tax provision refers to accelerated depreciation. The numbers reported in the text are a simple average of the neutral and aggressive monetary policy results. Note that while the partial repeal of accelerated depreciation paired with a five percentage-point reduction in the CIT rate is estimated to be revenue neutral over the 10-year budget window, this combination loses revenue outside of the budget window because the partial repeal of accelerated depreciation raises significantly more revenue in earlier years than later years. For example, one estimate suggests that the full repeal of accelerated depreciation could fund a 30.3% CIT rate (4.7 percentage-point reduction) over the 10-year budget window but it could only fund a 32.3% CIT rate (2.7 percentage-point reduction) in the long run. See Jane Gravelle, (2011), Reducing depreciation allowances to finance a lower corporate tax rate, National Tax Journal, 64 (4), pp
Corporate Dividend and Capital Gains Taxation: A comparison of the United States to other developed nations
Corporate Dividend and Capital Gains Taxation: A comparison of the United States to other developed nations Prepared for the Alliance for Savings and Investment Drs. Robert Carroll and Gerald Prante Ernst
More informationCapital Cost Recovery across the OECD, 2018
FISCAL FACT No. 590 May 2018 Capital Cost Recovery across the OECD, 2018 Amir El-Sibaie Economist Key Findings A capital allowance is the percentage of total investment that a business can recover through
More informationEXECUTIVE SUMMARY COMPREHENSIVE TAX REFORM. The Time Is Now. Comprehensive Tax Reform The Time Is Now. July 2013
EXECUTIVE SUMMARY COMPREHENSIVE TAX REFORM The Time Is Now Comprehensive Tax Reform The Time Is Now 1 July 2013 Statement on Comprehensive Tax Reform The Business Roundtable supports comprehensive tax
More information2013 Global Survey of Accounting Assumptions. for Defined Benefit Plans. Executive Summary
2013 Global Survey of Accounting Assumptions for Defined Benefit Plans Executive Summary Executive Summary In broad terms, accounting standards aim to enable employers to approximate the cost of an employee
More informationA short history of debt
A short history of debt In the words of the late Charles Kindleberger, debt/financial crises are a hardy perennial we have been here many times before. Over the past decade and a half the ratio of global
More informationMacroeconomic impacts of limiting the tax deductibility of interest expenses of inbound companies
Macroeconomic impacts of limiting the tax deductibility of interest expenses of inbound companies Prepared on behalf of the Organization for International Investment June 2015 (Page intentionally left
More information2018 Global Survey of Accounting Assumptions. for Defined Benefit Plans. Executive summary
2018 Global Survey of Accounting Assumptions for Defined Benefit Plans Executive summary Executive summary In broad terms, accounting standards aim to enable employers to approximate the cost of an employee
More informationCorrigendum. OECD Pensions Outlook 2012 DOI: ISBN (print) ISBN (PDF) OECD 2012
OECD Pensions Outlook 2012 DOI: http://dx.doi.org/9789264169401-en ISBN 978-92-64-16939-5 (print) ISBN 978-92-64-16940-1 (PDF) OECD 2012 Corrigendum Page 21: Figure 1.1. Average annual real net investment
More informationFinancial wealth of private households worldwide
Economic Research Financial wealth of private households worldwide Munich, October 217 Recovery in turbulent times Assets and liabilities of private households worldwide in EUR trillion and annualrate
More informationCongress continues to consider moving to
Who Will Benefit from a Territorial Tax? Characteristics of Multinational Firms Jennifer Gravelle, Congressional Budget Office* INTRODUCTION Congress continues to consider moving to a territorial tax system
More informationActuarial Supply & Demand. By i.e. muhanna. i.e. muhanna Page 1 of
By i.e. muhanna i.e. muhanna Page 1 of 8 040506 Additional Perspectives Measuring actuarial supply and demand in terms of GDP is indeed a valid basis for setting the actuarial density of a country and
More informationGlobal Business Barometer April 2008
Global Business Barometer April 2008 The Global Business Barometer is a quarterly business-confidence index, conducted for The Economist by the Economist Intelligence Unit What are your expectations of
More informationMeasuring National Output and National Income. Gross Domestic Product. National Income and Product Accounts
C H A P T E R 18 Measuring National Output and National Income Prepared by: Fernando Quijano and Yvonn Quijano Gross Domestic Product Gross domestic product (GDP) is the total market value of all final
More informationMACROECONOMIC ANALYSIS OF THE TAX REFORM ACT OF 2014
MACROECONOMIC ANALYSIS OF THE TAX REFORM ACT OF 2014 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION February 26, 2014 JCX-22-14 CONTENTS INTRODUCTION AND SUMMARY... 1 Page I. DESCRIPTION OF PROPOSAL...
More informationIssue Brief for Congress
Order Code IB91078 Issue Brief for Congress Received through the CRS Web Value-Added Tax as a New Revenue Source Updated January 29, 2003 James M. Bickley Government and Finance Division Congressional
More informationUPDATE ON FISCAL STIMULUS AND FINANCIAL SECTOR MEASURES. April 26, 2009
UPDATE ON FISCAL STIMULUS AND FINANCIAL SECTOR MEASURES April 26, 2009 This note provides an update of information in the paper, The State of Public Finances: Outlook and Medium-Term Policies After the
More informationA Retrospective on the Tax Law of 2017 and Prospective on the Next Tax Laws Note some estimates represent work in progress that is subject to revision
A Retrospective on the Tax Law of 2017 and Prospective on the Next Tax Laws Note some estimates represent work in progress that is subject to revision Jason Furman Harvard Kennedy School M-RCBG Business
More informationTurkey s Saving Deficit Issue From an Institutional Perspective
Turkey s Saving Deficit Issue From an Institutional Perspective Engin KURUN, Ph.D CEO, Ziraat Asset Management Oct. 25th, 2011 - Istanbul 1 PRESENTATION Household and Institutional Savings Institutional
More informationMethodology Calculating the insurance gap
Methodology Calculating the insurance gap Insurance penetration Methodology 3 Insurance Insurance Penetration Rank Rank Rank penetration penetration difference 2018 2012 change 2018 report 2012 report
More informationOECD releases first annual peer review report on Action 5
5 December 2017 Global Tax Alert OECD releases first annual peer review report on Action 5 EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web
More informationCOMPARISON OF RIA SYSTEMS IN OECD COUNTRIES
COMPARISON OF RIA SYSTEMS IN OECD COUNTRIES Nick Malyshev, OECD Conference on the Further Development of Impact Assessment in the European Union Brussels, RIA SYSTEMS IN OECD COUNTRIES Regulatory Impact
More informationSources of Government Revenue in the OECD, 2016
FISCAL FACT No. 517 July, 2016 Sources of Government Revenue in the OECD, 2016 By Kyle Pomerleau Director of Federal Projects Kevin Adams Research Assistant Key Findings OECD countries rely heavily on
More informationHow Tax Reform Can Address America s Diminishing Investment and Economic Growth
September 23, 2013 No. 395 Fiscal Fact How Tax Reform Can Address America s Diminishing Investment and Economic Growth By William McBride, PhD Introduction America s economic problems are often attributed
More informationTAXATION OF TRUSTS IN ISRAEL. An Opportunity For Foreign Residents. Dr. Avi Nov
TAXATION OF TRUSTS IN ISRAEL An Opportunity For Foreign Residents Dr. Avi Nov Short Bio Dr. Avi Nov is an Israeli lawyer who represents taxpayers, individuals and entities. Areas of Practice: Tax Law,
More informationGlobal Economic Outlook John Hawksworth Chief Economist, PwC September 2012
www.pwc.co.uk/economics Global Economic Outlook John Hawksworth Chief Economist, September 2012 Agenda Global overview Short term prospects for Europe, US and BRICs Long term trends: demographics, growth
More informationIndicator B3 How much public and private investment in education is there?
Education at a Glance 2014 OECD indicators 2014 Education at a Glance 2014: OECD Indicators For more information on Education at a Glance 2014 and to access the full set of Indicators, visit www.oecd.org/edu/eag.htm.
More informationEQUITY REPORTING & WITHHOLDING. Updated May 2016
EQUITY REPORTING & WITHHOLDING Updated May 2016 When you exercise stock options or have RSUs lapse, there may be tax implications in any country in which you worked for P&G during the period from the
More informationSan Francisco Retiree Health Care Trust Fund Education Materials on Public Equity
M E K E T A I N V E S T M E N T G R O U P 5796 ARMADA DRIVE SUITE 110 CARLSBAD CA 92008 760 795 3450 fax 760 795 3445 www.meketagroup.com The Global Equity Opportunity Set MSCI All Country World 1 Index
More informationThe macroeconomic effects of a carbon tax in the Netherlands Íde Kearney, 13 th September 2018.
The macroeconomic effects of a carbon tax in the Netherlands Íde Kearney, th September 08. This note reports estimates of the economic impact of introducing a carbon tax of 50 per ton of CO in the Netherlands.
More informationInternational Statistical Release
International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org) Worldwide Investment Fund Assets and Flows Trends in the
More informationNuts & Bolts of Corporate Tax Reform
Nuts & Bolts of Corporate Tax Reform July 19, 2013 Presentation for the Alliance for a Just Society Steve Wamhoff, Citizens for Tax Justice The Work of Citizens for Tax Justice (CTJ) on Federal Tax Policy
More informationKey Issues in the Design of Capital Gains Tax Regimes: Taxing Non- Residents. 18 July 2014
Key Issues in the Design of Capital Gains Tax Regimes: Taxing Non- Residents 18 July 2014 How do we tax non-residents on capital income? Domestic design issues Tax treaty issues Interrelationship between
More informationSwitzerland implements spontaneous exchange of information
29 April 2016 Global Tax Alert Switzerland implements spontaneous exchange of information EY Global Tax Alert Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web
More informationSources of Government Revenue in the OECD, 2014
FISCAL FACT Nov. 2014 No. 443 Sources of Government Revenue in the OECD, 2014 By Kyle Pomerleau Economist Key Findings OECD countries rely heavily on consumption taxes, such as the value added tax, and
More informationAir travel markets over the next two decades
Air travel markets over the next two decades October 2016 Brian Pearce Chief Economist, IATA We ve enjoyed a long period of above-trend air travel growth 30% Growth in worldwide RPKs 25% 20% 15% 7 years
More informationInternational Statistical Release
International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org) Worldwide Investment Fund Assets and Flows Trends in the
More informationFederal Tax Reform NCSL Executive Committee Task Force on State and Local Taxation Jackson, Wyoming June 16, 2017
Federal Tax Reform NCSL Executive Committee Task Force on State and Local Taxation Jackson, Wyoming June 16, 2017 Rachelle Bernstein, National Retail Federation Joe Crosby, Multistate Associates, Karl
More informationLONG-TERM PROJECTIONS OF PUBLIC PENSION EXPENDITURE
7. FINANCES OF RETIREMENT-INCOME SYSTEMS LONG-TERM PROJECTIONS OF PUBLIC PENSION EXPENDITURE Key results Public spending on pensions has been on the rise in most OECD countries for the past decades, as
More informationReporting practices for domestic and total debt securities
Last updated: 27 November 2017 Reporting practices for domestic and total debt securities While the BIS debt securities statistics are in principle harmonised with the recommendations in the Handbook on
More informationThe Economics of Public Health Care Reform in Advanced and Emerging Economies
The Economics of Public Health Care Reform in Advanced and Emerging Economies Benedict Clements Fiscal Affairs Department, IMF November 2012 This presentation represents the views of the author and should
More informationInternational Statistical Release
International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org). Worldwide Investment Fund Assets and Flows Trends in the
More informationChapter 6 Measuring National Output and National Income. Kazu Matsuda IBEC 203 Macroeconomics
Chapter 6 Measuring National Output and National Income Kazu Matsuda IBEC 203 Macroeconomics MEASURING NATIONAL OUTPUT AND NATIONAL INCOME MEASURING NATIONAL OUTPUT AND NATIONAL INCOME National income
More informationThe Challenge of Public Pension Reform in Advanced and Emerging Economies
The Challenge of Public Pension Reform in Advanced and Emerging Economies Mauricio Soto Fiscal Affairs Department International Monetary Fund January 212 The views expressed herein are those of the author
More informationAll-Country Equity Allocator February 2018
Leila Heckman, Ph.D. lheckman@dcmadvisors.com 917-386-6261 John Mullin, Ph.D. jmullin@dcmadvisors.com 917-386-6262 Charles Waters cwaters@dcmadvisors.com 917-386-6264 All-Country Equity Allocator February
More informationInternational Statistical Release
International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org). Worldwide Investment Fund Assets and Flows Trends in the
More informationApproach to Employment Injury (EI) compensation benefits in the EU and OECD
Approach to (EI) compensation benefits in the EU and OECD The benefits of protection can be divided in three main groups. The cash benefits include disability pensions, survivor's pensions and other short-
More informationGLOBAL FDI OUTFLOWS CONTINUED TO RISE IN 2011 DESPITE ECONOMIC UNCERTAINTIES; HOWEVER PROSPECTS REMAIN GUARDED HIGHLIGHTS
GLOBAL FDI OUTFLOWS CONTINUED TO RISE IN 211 DESPITE ECONOMIC UNCERTAINTIES; HOWEVER PROSPECTS REMAIN GUARDED No. 9 12 April 212 ADVANCE UNEDITED COPY HIGHLIGHTS Global foreign direct investment (FDI)
More informationPublic Pension Spending Trends and Outlook in Emerging Europe. Benedict Clements Fiscal Affairs Department International Monetary Fund March 2013
Public Pension Spending Trends and Outlook in Emerging Europe Benedict Clements Fiscal Affairs Department International Monetary Fund March 13 Plan of Presentation I. Trends and drivers of public pension
More informationAnalyzing the macroeconomic impacts of the Tax Cuts and Jobs Act on the US economy and key industries
Analyzing the macroeconomic impacts of the Tax Cuts and Jobs Act on the US economy and key industries B Analyzing the macroeconomic impacts of the Tax Cuts and Jobs Act on the US economy and key industries
More informationThe Global Aging Preparedness Index
The Global Aging Preparedness Index 2 nd Edition Richard Jackson Senior Associate Center for Strategic & International Studies International Longevity Centre Roundtable May 6, 2014 London GAPINDEX.CSIS.ORG
More informationSummary of key findings
1 VAT/GST treatment of cross-border services: 2017 survey Supplies of e-services to consumers (B2C) (see footnote 1) Supplies of e-services to businesses (B2B) 1(a). Is a non-resident 1(b). If there is
More information2017 Global Family Business Tax Monitor
2017 Global Family Business Tax Monitor Preserve your legacy: a global study on inheritance tax for family business Peter Englisch EY Global Family Business Leader Alongside his extensive experience as
More informationInternational Statistical Release
International Statistical Release This release and additional tables of international statistics are available on efama s website (www.efama.org) Worldwide Investment Fund Assets and Flows Trends in the
More informationNew US income tax treaty and protocol with Italy enters into force
22 December 2009 International Tax Alert News and views from Foreign Tax Desks New US income tax treaty and protocol with Italy enters into force Executive summary On 16 December 2009, the United States
More informationThe Case for Fundamental Tax Reform: Overview of the Current Tax System
The Case for Fundamental Tax Reform: Overview of the Current Tax System Sources of Federal Receipts Projected for 2016 Excise Taxes 2.9% Estate & Gift Taxes 0.6% Corporate Income Taxes 9.8% Other Taxes
More informationEconomic Stimulus Packages and Steel: A Summary
Economic Stimulus Packages and Steel: A Summary Steel Committee Meeting 8-9 June 2009 Sources of information on stimulus packages Questionnaire to Steel Committee members, full participants and observers
More informationNeil Foster, Robert Stehrer, Marcel Timmer, Gaaitzen de Vries. WIOD conference, april 2012 Groningen
Neil Foster, Robert Stehrer, Marcel Timmer, Gaaitzen de Vries WIOD conference, 24-26 april 2012 Groningen Local and global value chains (1 st & 2 nd unbundling) From made in [country] to: Made in the World
More informationManpowerGroup Employment Outlook Survey Global
ManpowerGroup Employment Outlook Survey Global 1 218 ManpowerGroup interviewed nearly 59, employers across 43 countries and territories to forecast labor market activity in Quarter 1 218. All participants
More informationPREDICTING VEHICLE SALES FROM GDP
UMTRI--6 FEBRUARY PREDICTING VEHICLE SALES FROM GDP IN 8 COUNTRIES: - MICHAEL SIVAK PREDICTING VEHICLE SALES FROM GDP IN 8 COUNTRIES: - Michael Sivak The University of Michigan Transportation Research
More informationNew in 2013: Greater emphasis on capital flows Refinements to EBA methodology Individual country assessments
As in 212: Stock-take: multilaterally consistent assessment of external sector policies of the largest economies Feeds into Article IVs Draws on External Balance Assessment (EBA) methodology/other Identifies
More informationGlobal Exhibition Barometer 13 th edition (July 2014)
Global Exhibition Barometer 13 th edition A UFI report based on the results of a survey conducted in June among UFI*, SISO**, AFIDA*** & EXSA**** Members (*) Global (**) USA (***) Central & South America
More informationAt the end of this report, we summarize some important Year-End Considerations which employers should be prepared to address.
Global Report December 2009 Retirement Plan Accounting Assumptions at 2009 This report supplements our June 2009 Global Report, which presented the results of Hewitt Associates global survey of 2008 year-end
More informationAugust 2014 IMF Policy Paper
August 2014 IMF Policy Paper IMF POLICY PAPER August 2014 QUOTA FORMULA DATA UPDATE AND FURTHER CONSIDERATIONS IMF staff regularly produces papers proposing new IMF policies, exploring options for reform,
More informationPortfolio Strategist Update from BlackRock Active Opportunity ETF Portfolios
Portfolio Strategist Update from BlackRock Active Opportunity ETF Portfolios As of Sept. 30, 2017 Ameriprise Financial Services, Inc., ("Ameriprise Financial") is the investment manager for Active Opportunity
More informationSTOXX EMERGING MARKETS INDICES. UNDERSTANDA RULES-BA EMERGING MARK TRANSPARENT SIMPLE
STOXX Limited STOXX EMERGING MARKETS INDICES. EMERGING MARK RULES-BA TRANSPARENT UNDERSTANDA SIMPLE MARKET CLASSIF INTRODUCTION. Many investors are seeking to embrace emerging market investments, because
More informationGlobal Select International Select International Select Hedged Emerging Market Select
International Exchange Traded Fund (ETF) Managed Strategies ETFs provide investors a liquid, transparent, and low-cost avenue to equities around the world. Our research has shown that individual country
More informationEDHECinfra Broad Market Index Families
EDHECinfra Broad Market Index Families Unlisted Infrastructure Equity Index Families Global Unlisted Infrastructure Equity Global Project Finance Equity Advanced Markets Unlisted Infrastructure Equity
More informationSome Basic Facts about Government Expenditures and Taxation in Canada. Econ 525
Some Basic Facts about Government Expenditures and Taxation in Canada Econ 525 Revenues and Expenditures in Canada Since we re studying the role of government in this course it is worth considering some
More informationWhat Can Macroeconometric Models Say About Asia-Type Crises?
What Can Macroeconometric Models Say About Asia-Type Crises? Ray C. Fair May 1999 Abstract This paper uses a multicountry econometric model to examine Asia-type crises. Experiments are run for Thailand,
More informationStatistical annex. Sources and definitions
Statistical annex Sources and definitions Most of the statistics shown in these tables can be found as well in several other (paper or electronic) publications or references, as follows: the annual edition
More informationProgress towards Strong, Sustainable and Balanced Growth. Figure 1: Recovery from Financial Crisis (100 = First Quarter of Real GDP Contraction)
Progress towards Strong, Sustainable and Balanced Growth Figure 1: Recovery from Financial Crisis (100 = First Quarter of Real GDP Contraction) Source: OECD May 2014 Forecast, Haver Analytics, Rogoff and
More informationProgress Towards Strong, Sustainable, and Balanced Growth. Figure 1: Recovery From Financial Crisis (100 = First Quarter of Real GDP contraction)
Progress Towards Strong, Sustainable, and Balanced Growth Figure 1: Recovery From Financial Crisis ( = First Quarter of Real GDP contraction) 13 125 196-26 AE Recessions' Range*** 196-26 AE Recessions**
More informationPolitical Developments & The 2017 Tax Cut and Jobs Act
Political Developments & The 2017 Tax Cut and Jobs Act Moderator Elizabeth Creager, AT&T Assistant Vice President for Tax Panelists Rohit Kumar, PwC Principal & Tax Policy Services Leader Jon Lieber, PwC
More informationAll-Country Equity Allocator July 2018
Leila Heckman, Ph.D. lheckman@dcmadvisors.com 917-386-6261 John Mullin, Ph.D. jmullin@dcmadvisors.com 917-386-6262 Allison Hay ahay@dcmadvisors.com 917-386-6264 All-Country Equity Allocator July 2018 A
More informationHighlights and key messages for business and public policy
Highlights and key messages for business and public policy Key projections 2018 2019 Real GDP growth 1.5% 1.6% Consumer spending growth 1.1% 1.3% Inflation (CPI) 2.7% 2.3% Source: PwC main scenario projections
More informationEmerging Capital Markets AG907
Emerging Capital Markets AG907 M.Sc. Investment & Finance M.Sc. International Banking & Finance Lecture 2 Corporate Governance in Emerging Capital Markets Ignacio Requejo Glasgow, 2010/2011 Overview of
More informationInternet Appendix: Government Debt and Corporate Leverage: International Evidence
Internet Appendix: Government Debt and Corporate Leverage: International Evidence Irem Demirci, Jennifer Huang, and Clemens Sialm September 3, 2018 1 Table A1: Variable Definitions This table details the
More informationFiscal sustainability report Robert Chote Chairman
Fiscal sustainability report 2013 Robert Chote Chairman 17 July 2013 Preamble OBR set up in 2010 to provide independent and authoritative analysis of the UK public finances BRC responsible for the conclusions,
More informationSources of Government Revenue in the OECD, 2017
FISCAL FACT No. 558 Aug. 2017 Sources of Government Revenue in the OECD, 2017 Amir El-Sibaie Analyst Key Findings: OECD countries rely heavily on consumption taxes, such as the value-added tax, and social
More informationSources of Government Revenue across the OECD, 2015
FISCAL FACT Apr. 2015 No. 465 Sources of Government Revenue across the OECD, 2015 By Kyle Pomerleau Economist Key Findings OECD countries rely heavily on consumption taxes, such as the value added tax,
More informationTAX POLICY CENTER BRIEFING BOOK. Background. Q. What are the sources of revenue for the federal government?
What are the sources of revenue for the federal government? FEDERAL BUDGET 1/4 Q. What are the sources of revenue for the federal government? A. About 48 percent of federal revenue comes from individual
More informationV. MAKING WORK PAY. The economic situation of persons with low skills
V. MAKING WORK PAY There has recently been increased interest in policies that subsidise work at low pay in order to make work pay. 1 Such policies operate either by reducing employers cost of employing
More informationLesson 3. John Maynard Keynes and Fiscal Policy
Unit 4 John Maynard Keynes and Fiscal Policy 6-1 Lesson 3 Krugman, Module 10 pp. 101-110 Module 11 pp. 112-116 Module Objectives What is GDP? How is GDP Measured? The Income Method The Expenditures Method.
More informationIndicators of National Econmoy. Ing. Mansoor Maitah Ph.D. et Ph.D.
Indicators of National Econmoy Ing. Mansoor Maitah Ph.D. et Ph.D. Circular Flows in the Market Economy Describes the flow of resources, products, income, and revenue among the four decision makers (Households;
More informationGlobal Economic Briefing: Global Liquidity
Global Economic Briefing: Global Liquidity December 21, 217 Dr. Edward Yardeni 516-972-7683 eyardeni@ Debbie Johnson 48-664-1333 djohnson@ Mali Quintana 48-664-1333 aquintana@ Please visit our sites at
More informationDFA Global Equity Portfolio (Class F) Quarterly Performance Report Q2 2014
DFA Global Equity Portfolio (Class F) Quarterly Performance Report Q2 2014 This presentation has been prepared by Dimensional Fund Advisors Canada ULC ( DFA Canada ), manager of the Dimensional Funds.
More informationManpowerGroup Employment Outlook Survey New Zealand
ManpowerGroup Employment Outlook Survey New Zealand 1 218 New Zealand Employment Outlook The ManpowerGroup Employment Outlook Survey for the first quarter 218 was conducted by interviewing a representative
More informationMACROECONOMIC ANALYSIS OF THE TAX CUT AND JOBS ACT AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FINANCE ON NOVEMBER 16, 2017
MACROECONOMIC ANALYSIS OF THE TAX CUT AND JOBS ACT AS ORDERED REPORTED BY THE SENATE COMMITTEE ON FINANCE ON NOVEMBER 16, 2017 Prepared by the Staff of the JOINT COMMITTEE ON TAXATION November 30, 2017
More informationGlobal Construction 2030 Expo EDIFICA 2017 Santiago Chile. 4-6 October 2017
Global Construction 2030 Expo EDIFICA 2017 Santiago Chile 4-6 October 2017 Graham Robinson Global Construction Perspectives Global Construction 2030 is the fourth in a series of global studies of the construction
More informationPart B STATEMENT OF ADDITIONAL INFORMATION
Part B STATEMENT OF ADDITIONAL INFORMATION SIT LARGE CAP GROWTH FUND, INC. SNIGX SIT MID CAP GROWTH FUND, INC. NBNGX SIT MUTUAL FUNDS, INC, comprised of: SIT BALANCED FUND SIBAX SIT DIVIDEND GROWTH FUND,
More informationRECENT EVOLUTION AND OUTLOOK OF THE MEXICAN ECONOMY BANCO DE MÉXICO OCTOBER 2003
OCTOBER 23 RECENT EVOLUTION AND OUTLOOK OF THE MEXICAN ECONOMY BANCO DE MÉXICO 2 RECENT DEVELOPMENTS OUTLOOK MEDIUM-TERM CHALLENGES 3 RECENT DEVELOPMENTS In tandem with the global economic cycle, the Mexican
More informationChallenges for Today s Short-Term Assignments
Point of view Challenges for Today s Short-Term Assignments Consulting. Outsourcing. Investments. Why is there an increasing trend for short-term assignments? What are the current challenges? How do companies
More informationGlobal Consumer Confidence
Global Consumer Confidence The Conference Board Global Consumer Confidence Survey is conducted in collaboration with Nielsen 4TH QUARTER 2017 RESULTS CONTENTS Global Highlights Asia-Pacific Africa and
More informationRevenue Arrangements for Implementing EU and OECD Exchange of Information Requirements In Respect of Tax Rulings
Revenue Arrangements for Implementing EU and OECD Exchange of Information Requirements In Respect of Tax Rulings Page 1 of 21 Table of Contents 1. Introduction...3 2. Overview of Council Directive (EU)
More informationManpowerGroup Employment Outlook Survey Netherlands
ManpowerGroup Employment Outlook Survey Netherlands 1 218 The ManpowerGroup Employment Outlook Survey for the first quarter 218 was conducted by interviewing a representative sample of 754 employers in
More informationAssessing US Global Tax Competitiveness after Tax Reform Andrew B. Lyon* and William A. McBride PricewaterhouseCoopers LLP.
Assessing US Global Tax Competitiveness after Tax Reform Andrew B. Lyon* and William A. McBride PricewaterhouseCoopers LLP May 9, 2018 Abstract This paper assesses the potential impacts of the major corporate
More informationSwitzerland and Germany top the PwC Young Workers Index in developing younger people
Press release Date 9 November 2015 Contact Mihnea Anastasiu Pages 5 Media Relations Manager Tel: +40 21 225 3546 Email: mihnea.anastasiu@ro.pwc.com Switzerland and Germany top the PwC Young Workers Index
More informationGuide to Treatment of Withholding Tax Rates. January 2018
Guide to Treatment of Withholding Tax Rates Contents 1. Introduction 1 1.1. Aims of the Guide 1 1.2. Withholding Tax Definition 1 1.3. Double Taxation Treaties 1 1.4. Information Sources 1 1.5. Guide Upkeep
More informationManpowerGroup Employment Outlook Survey Singapore
ManpowerGroup Employment Outlook Survey Singapore 1 218 ManpowerGroup interviewed nearly 59, employers across 43 countries and territories to forecast labor market activity* in 1Q 218. All participants
More informationHEALTH WEALTH CAREER 2016 CA MTCS: MERCER TOTAL COMPENSATION SURVEY FOR THE ENERGY SECTOR OVERVIEW AND SURVEY DEFINITIONS
HEALTH WEALTH CAREER 2016 CA MTCS: MERCER TOTAL COMPENSATION SURVEY FOR THE ENERGY SECTOR OVERVIEW AND SURVEY DEFINITIONS The analysis of the compensation and related information collected is displayed
More information